Home owners yet to realise cost of NBN’s demise

The impact of cancelling Labor’s fibre-to-the-home NBN has not yet registered with residents in affected suburbs.
Photo: Rob Homer

by
Jessica Sier

The demise of Labor’s fibre-to-the-home (FTTH) broadband policy won’t see the immediate emergence of an Australian house price digital divide, but real estate agents in the half-completed Sydney suburb of Blacktown warned it could emerge as an important sleeper issue for home owners.

Director at real estate firm Harcourt’s, Andrew Chrysanthou, said he hadn’t had a single buyer ask which broadband connection they would have.

“It hasn’t made any extra sales . . . It’s definitely not the talk of the town from people looking to buy or rent around here," he said.

“There may be a bit of an impact in the future as it becomes a more widely used service, but even then I don’t think it will be a major selling point."

Sky Property’s Riza Kamerakkas meanwhile said home buyers were looking at other property features and potential rental returns, ahead of worrying about the internet connection.

Value not appreciated

“It’s not something unique, it’s not something you’re going to have and your neighbour’s not going to have," he said. “Blacktown is an investor ­market, people are coming and thinking about rental returns, not the NBN."

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According to data from Australian Property Monitors, the median house price in the Blacktown area is $420,000 and the median unit price is $306,000.

Therefore the cost of $5000 cited by Mr Albanese for residents wishing to extend their fibre connection from the node to their properties remains at the margins of consideration.

“$5000 might make a difference in a few years, but it doesn’t now," Mr Chrysanthou said.

“Even then I don’t think it will impact the property market ­significantly.

“I don’t think people would actually pay the difference, to be honest."

Despite being an advocate for the FTTH policy, New South Wales Labor leader and member for Blacktown
John Robertson
agreed that home buyers did not yet fully appreciate the value of broadband connections.

“Sadly people will make do with the second-rate option," he said. “I don’t think they will pay extra."

However Mr Robertson said demographic changes in the area meant the value of internet infrastructure would be recognised more readily in the future. “More professional people are choosing to live here and they will want faster downloads," he said.

“Over time I think there will be an impact on the market. House prices will reflect whether or not the property has this added feature."

Other priorities

Local resident Hendrik Richert recently bought a unit in the area and said high-speed internet connectivity had not factored into his decision ­making.

“I was flat-out figuring out how the first home owner’s grant worked," he said. “The NBN didn’t cross my mind."

“I don’t know if I’m hooked up. I assume so, my building is new."

Most residents in Blacktown spoken to by The Australian Financial Review weren’t sure whether or not their ­properties were connected to the NBN, although many thought it might increase the value of their properties in the future if they had the fibre-to-the-home connection.When asked if they would pay the difference to have the fibre to ­the premise connection, however, the response was overwhelmingly negative.Suburbs such as Blacktown, which have some streets connected and some awaiting contracts, may experience disjointed construction work as the new rollout plan is established.